The 1978-79 annual report of the Southern Regional Education Board is presented. Contents are as follows: information about SREB, sources of support, chairman's statement, president's report, and information about current SREB programs. SREB's new, revised profile of southern postsecondary education in the mid-eighties, information about enrollment projections for the eighties, and supply and demand for college graduates in the south by 1985 are presented. An Academic Common Market, established by SREB in 1974, has encouraged joint use of uncommon graduate programs by other southern states. This fall 370 programs will be shared regionally and the Market will include a dozen uncommon baccalaureate programs in allied health fields. Work accomplished on faculty development and improved fiscal management are outlined, and information is presented on testing of a nursing curriculum, manpower issues in nursing and allied health, new issues in the human services, and mid-level careers in mental health. Other SREB programs concern the educational attainment of black Americans, racial composition of faculties, and instructional change in black colleges. For each of the programs, participating institutions, staff members, and sources of support are listed. Recent SREB publications and information about SREB staff and finances are included. (SW)